Euro recovers from 2-year low against Dollar

Euro rose in the European market on Friday against a basket of global currencies, continuing its recover for the second consecutive daily gain from a 2-year low against the US dollar, heading towards the third weekly gain in May, as the US dollar fell against most major and minor currencies on weak data in the US. This comes in conjunction with the indicators of the victory of the parties that support the Euro increasing during the European Parliament elections.

As of 07:07 GMT, EUR/USD rose 0.15%, trading at $1.1197, from the opening price of $1.1181, with the highest at $1.1206, and the lowest at $1.1172.

Yesterday, Euro gained 0.3% against the dollar, in its first daily gain in three days, amidst rebounding from a 2-year low at $1.1107 recorded earlier.

Over the course of the week, Euro rose 0.4% against the dollar, heading towards its third weekly gain in May on the back of US dollar' decline against most major and minor currencies.

The dollar index fell by 0.2%, continuing its losses for the second consecutive day, as correction and profit taking activities accelerated from a 2-year high of 98.23 points recorded earlier yesterday.

In contrast to the correction and profit taking, the drop in dollar comes after weak data in the US, which raised concerns of a sharp slowdown in the US economy in the second quarter of this year, with markets raising expectations of the possibility of the Federal Reserve to cut interest rates this year.

The initial reading of the US manufacturing activity showed the weakest pace of growth in almost a decade during May, in a strong sign of a sharp slowdown in economic growth in the second quarter of this year.

The 10-year US treasury yield fell on Thursday to its lowest level since October, with markets raising expectations of the possibility of the Federal Reserve cut interest rates this year.

The administration of the US President, Donald Trump, is expected to exert considerable pressure on the Federal Reserve from now on, until interest rates are cut to support the economy in the face of the country's fierce trade war with China.

On the other hand, the European Parliament elections began yesterday, and set to end on May 26th, amid the indicators of the victory of the parties that support the Euro increasing during the elections. In case it happened, the Euro will continue to recover against a basket of global currencies.